Loop Industries Reports Fourth Quarter and Full Year Financial Results
Loop Industries Inc., a Montreal-based company specializing in the manufacture of 100% recycled polyethylene terephthalate (PET) and polyester fiber, presented its consolidated financial results for the fourth quarter and fiscal year ended February 28, 2021 and reported update on marketing efforts. .
In the third quarter of 2021, Loop Industries decided to convert its pilot plant in Terrebonne, Quebec, to an Infinite Loop demonstration and training facility. This demonstration facility will showcase the end-to-end technology and Infinite Loop manufacturing process for the production of recycled PET resin to potential partners and customers. In addition, the facility will provide operational training prior to commissioning of the commercial plants. Significant equipment improvements have been made to the facilities. PET curing equipment is expected to be ordered and installed by the end of calendar year 2021 and be operational by early 2022.
Loop Industries Receives Letter of No Objection from FDA
On March 31, 2021, Loop Industries received a âLetter of No Objectionâ (NOL) from the FDA confirming the ability of Loop’s tertiary recycling process to clean and produce post-industrial and post-consumer recycled PET for use. be used in the manufacture of food products. articles in contact under all conditions of use for which PET is authorized. âWe believe that obtaining the NOL, in addition to the confirmation of REACH registration from the European Union obtained in the third quarter of 2021, is an important step in the implementation of the food packaging regulation and supports our opportunity. targeted market for the commercialization of recycled PET Loop resin, âthe company said.
Loop Industries also provided an update on progress, noting that in partnership with engineering and construction company Worley, it continues to focus on completing the Infinite Loop pre-feasibility engineering design for a capacity target of installations of up to 70,000 metric tonnes / year. This includes the integration of Loop’s depolymerization technology with the polymerization know-how of Invista / Chemtex. âWe intend to use this pre-feasibility design for the installation of the BÃ©cancour, Quebec infinite loop,â the company said.
Strategic partnerships are underway, Loop Industries said. The partnership with the Suez group, announced last September, for the construction of the first infinite loop manufacturing plant in Europe continues, the current priorities being site selection, authorizations, raw material requirements and pre-feasibility engineering design. The final section of the site is scheduled for this summer.
The joint venture with Indorama Ventures Ltd. was hampered by quarantine requirements between Canada and the United States, which disrupted the schedule for this project.
Financial statements show increasing losses
Loop Industries financial statements show that the net loss for the three-month period ended February 28, 2021, increased from $ 9.44 million to $ 13.19 million, compared to the net loss for the period of three months ended February 29, 2020, which was $ 3.76 million. The increase in net loss is mainly due to an increase in research and development expenses of $ 6.71 million, an increase in general and administrative expenses of $ 3.05 million and a decrease in interest. Accounts payable of $ 0.12 million, partially offset by a decrease in interest and other financial expenses of $ 0.35 million, an increase in foreign exchange loss of $ 0.03 million and a decrease in expenses from amortization of $ 0.12 million.
The net loss for the year ended February 28, 2021 increased from $ 21.84 million to $ 36.34 million, compared to the net loss for the year ended February 29, 2020, which was 14. $ 51 million. The increase in net loss is mainly due to the increase in research and development expenses of $ 13.97 million; an increase in the depreciation expense of property, plant and equipment of $ 5.02 million; an increase in general and administrative costs of $ 4.32 million; a decrease in interest income of $ 0.41 million; and an increase in foreign loss of $ 0.29 million, partially offset by a decrease in interest and other financial expenses of $ 2.14 million and a decrease in amortization expense of $ 0.03 million .